Yes — When I try to make a video call with Skype, my video doesn’t work, and Skype tells me that perhaps another application is using my webcam. Am I being spied on? (McAfee gives my PC a clean report.)

If it works from there, then you close it out, and then go to skype and skype doesn’t work then it seems more likely that the USB webcam just doesn’t work with skype. It is a little weird but I am certain weirder things have happened. I would try installing another IM client to see if it works in other clients.

I haven’t actually had a video call with anyone yet (they’re away for a while; is there a test site?), but when I try to initiate a call I now see my image, instead of the exclamation-mark icon I used to see, in the little video sub-window.

The only lights I have on my webcam are an array of bright white LEDs, intensity-controllable by a pot on the cord — there’s no “on” indicator.